In cash basis accounting, for tax purposes: a.Income is generally recognized when it is actually or constructively received and expenses are generally recognized when they are paid. b.Income is recognized when it is earned regardless of when received and expenses are recognized when they are actually or constructively incurred. c.The cash basis is not allowed for businesses reported on Schedule C. d.Income is recognized when it is actually or constructively received and expenses are recognized when they are actually or constructively incurred, regardless of when paid.
In cash basis accounting, for tax purposes: a.Income is generally recognized when it is actually or constructively received and expenses are generally recognized when they are paid. b.Income is recognized when it is earned regardless of when received and expenses are recognized when they are actually or constructively incurred. c.The cash basis is not allowed for businesses reported on Schedule C. d.Income is recognized when it is actually or constructively received and expenses are recognized when they are actually or constructively incurred, regardless of when paid.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter5: Closing Entries And The Post-closing Trial Balance
Section: Chapter Questions
Problem 5QY: Under the cash basis of accounting, which of the following statements is true? a. Revenue is...
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In cash basis accounting, for tax purposes:a.Income is generally recognized when it is actually or constructively received and expenses are generally recognized when they are paid.b.Income is recognized when it is earned regardless of when received and expenses are recognized when they are actually or constructively incurred.c.The cash basis is not allowed for businesses reported on Schedule C.d.Income is recognized when it is actually or constructively received and expenses are recognized when they are actually or constructively incurred, regardless of when paid.
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